President Trump considers easing Russia sanctions and tapping oil reserves to curb price spikes amid Middle East conflict and election concerns.

WASHINGTON: President Donald Trump is considering a package of measures to curb surging global oil prices, including easing sanctions on Russia and coordinating a release from emergency stockpiles.

Multiple sources familiar with the deliberations say the options reflect White House concerns that price spikes could hurt the US economy ahead of the November midterm elections.

Trump told reporters his administration was acting to stabilise the market.

“So we have sanctions on some countries. We’re going to take those sanctions off until the Strait is up,” he said.

Easing sanctions could boost global oil supplies disrupted by the expanding conflict with Iran.

It would also complicate US efforts to deprive Russia of revenue for its war in Ukraine.

Analysts say the White House has few tools to quickly lower prices unless tanker traffic through the Strait of Hormuz is restored.

The vital waterway carries roughly a fifth of the world’s oil supply.

A plan to provide naval escorts and backstop insurance has so far failed to significantly boost shipping.

“The problem is options range from marginal through symbolic to deeply unwise,” said one source engaged with the White House.

The turmoil comes at a sensitive political moment for Trump, who has made low fuel prices a cornerstone of his economic message.

A prolonged spike could raise transportation and consumer costs across the broader economy.

Easing sanctions could involve broad relief or targeted options allowing certain countries to buy Russian oil without US penalties.

The US last week issued a temporary waiver allowing India to purchase specific Russian oil cargoes.

Officials are also discussing a possible joint crude release with Group of Seven counterparts.

US Energy Secretary Chris Wright confirmed the administration is considering coordinating sales from the Strategic Petroleum Reserve.

He added that restricting US energy exports was not being considered.

Other policy options include intervening in oil futures markets and waiving some federal taxes.

Lifting requirements under the Jones Act, which mandates domestic fuel move on US-flagged ships, is also being weighed.

Trump downplayed the price spike in a social media post on Sunday.

He called the surge a temporary and “very small price to pay for U.S.A.”.

On Monday, he said he expected the longer-term impact of the war on Iran to be lower prices for American consumers.

Global crude prices hit levels not seen since mid-2022, briefly touching USD 119 a barrel.

Gasoline and other fuel costs have surged since US and Israeli strikes on Iran began.

The White House last week asked federal agencies to assemble proposals to ease pressure on prices.

Top officials involved in the deliberations include Chief of Staff Susie Wiles and adviser Stephen Miller.

 The Sun Malaysia